3 Stocks Advancing The Drugs Industry

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 296.81 points (-1.8%) at 16,584 as of Thursday, July 31, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 306 issues advancing vs. 2,767 declining with 92 unchanged.

The Drugs industry as a whole closed the day down 2.3% versus the S&P 500, which was down 1.8%. Top gainers within the Drugs industry included Merus Labs International ( MSLI), up 3.0%, Bacterin International Holdings ( BONE), up 2.6%, SCYNEXIS ( SCYX), up 1.9%, Cormedix ( CRMD), up 4.7% and NovaBay Pharmaceuticals ( NBY), up 8.5%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

SCYNEXIS ( SCYX) is one of the companies that pushed the Drugs industry higher today. SCYNEXIS was up $0.13 (1.9%) to $6.98 on light volume. Throughout the day, 12,980 shares of SCYNEXIS exchanged hands as compared to its average daily volume of 22,900 shares. The stock ranged in a price between $6.09-$7.00 after having opened the day at $6.40 as compared to the previous trading day's close of $6.85.

SCYNEXIS has a market cap of $61.7 million and is part of the health care sector. Shares are unchanged year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on SCYX go as follows:

You can view the full analysis from the report here: SCYNEXIS Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Bacterin International Holdings ( BONE) was up $0.18 (2.6%) to $7.10 on average volume. Throughout the day, 23,666 shares of Bacterin International Holdings exchanged hands as compared to its average daily volume of 22,200 shares. The stock ranged in a price between $6.95-$7.20 after having opened the day at $7.16 as compared to the previous trading day's close of $6.92.

Bacterin International Holdings has a market cap of $36.9 million and is part of the health care sector. Shares are up 38.4% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on BONE go as follows:

You can view the full analysis from the report here: Bacterin International Holdings Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Merus Labs International ( MSLI) was another company that pushed the Drugs industry higher today. Merus Labs International was up $0.07 (3.0%) to $2.42 on average volume. Throughout the day, 38,758 shares of Merus Labs International exchanged hands as compared to its average daily volume of 35,100 shares. The stock ranged in a price between $2.16-$2.44 after having opened the day at $2.31 as compared to the previous trading day's close of $2.35.

Merus Labs International Inc., a specialty pharmaceutical company, is engaged in the acquisition and licensing of branded prescription medicines in the United States, Canada, and Europe. Merus Labs International has a market cap of $110.1 million and is part of the health care sector. Shares are up 64.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Merus Labs International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Merus Labs International as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from TheStreet Ratings analysis on MSLI go as follows:

  • Net operating cash flow has decreased to $2.93 million or 29.74% when compared to the same quarter last year. Despite a decrease in cash flow MERUS LABS INTERNATIONAL INC is still fairing well by exceeding its industry average cash flow growth rate of -54.80%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, MERUS LABS INTERNATIONAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MERUS LABS INTERNATIONAL INC is currently very high, coming in at 81.89%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MSLI's net profit margin of -21.74% significantly underperformed when compared to the industry average.
  • MERUS LABS INTERNATIONAL INC has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, MERUS LABS INTERNATIONAL INC continued to lose money by earning -$0.05 versus -$0.70 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 36.7% when compared to the same quarter one year prior, rising from -$2.30 million to -$1.46 million.

You can view the full analysis from the report here: Merus Labs International Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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